Topic: How To Invest

What is Pat’s commentary for the week of December 10, 2013?

Article Excerpt

More and more investors seem to look on the involvement of celebrity investors like Warren Buffett or Bill Gates as something of a pedigree for a stock. They reason that if Bill or Warren is involved, the stock must have some good qualities. So, they wonder, how far wrong can they go if they buy too? This attitude suits the times we live in. Up till a few months ago, many investors were pessimistic about the long-term stock market outlook. Recently, though, the economy has gained some momentum. The stock market (especially in the U.S.) has shot up and shows no sign of exhaustion. Investors take some encouragement from these events, but they are still eager for signs of confirmation. In today’s celebrity-obsessed world, it’s natural for them to place a premium on celebrity-investor endorsements. Predictably, the newsletter industry has seized on implied celebrity endorsements as a marketing tool. Some publishers try to reduce a celebrity investor’s stock-picking approach to a..